This still affects Ubuntu 16.04.
I see that gnome-software shows the title as gedit rather than Text
Editor. That leads me to believe that there is a problem with the
.desktop files or the appstream info gedit is providing.

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Maybe Unity is using a special value and that's why Unity shows Text
Editor in the Dash but gedit is used everywhere else.
** Attachment added: "Gnome Software shows gedit rather than Text Editor."
https://bugs.launchpad.net/hundredpapercuts/+bug/1437395/+attachment/4786109/+files/gnome-software%20screenshot.png
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Touch seeded packages, which is subscribed to gtk+3.0 in Ubuntu.
https://bugs.launchpad.net/bugs/1437395
Title:
gedit should display as Text Editor in Default Applications
Status in One Hundred Papercuts:
New
Status in gtk+3.0 package in Ubuntu:
New
Bug description:
In places related to choosing which application should be used to open
a file, the entry should be Text Editor. That is what is used in the
Unity menu and dash.
This affects the Default Applications menu in System Settings, the
Open With context menu, the Other Application... dialogue, and the
Open With tab in the file properties dialogue.
ProblemType: Bug
DistroRelease: Ubuntu 14.04
Package: gedit 3.10.4-0ubuntu4
ProcVersionSignature: Ubuntu 3.13.0-48.80-generic 3.13.11-ckt16
Uname: Linux 3.13.0-48-generic x86_64
ApportVersion: 2.14.1-0ubuntu3.8
Architecture: amd64
CurrentDesktop: Unity
Date: Fri Mar 27 11:12:52 2015
EcryptfsInUse: Yes
InstallationDate: Installed on 2012-11-01 (876 days ago)
InstallationMedia: Ubuntu 12.10 "Quantal Quetzal" - Release amd64 (20121017.5)
SourcePackage: gedit
UpgradeStatus: Upgraded to trusty on 2014-09-04 (204 days ago)
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